The Concept of Globalisation and the Impact on the Small Business in the UK

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The Concept of Globalisation and the
Impact on the Small Business in the
UK
EXECUTIVE SUMMARY
This study has been providing the details on the globalisation of the small company in the
UnitedKingdom.Thedifferentimpactsofinternationalizationonthesmallbusiness
organization.Therecommendationwerealsoprovidedtoreducethenegativeeffectof
globalization on SME’s.To perform the research project management tool Gantt chart has been
used. Different research methodologies areconsidered to collect,sample and analyzethe
collected data.The data collected form the number of respondents is analyzed to get the specific
result data.Report has been providing the information and way of globalization for a small size
organization. It also has been evaluated that how cans globalization can help the SME to achieve
larger opportunity in international market.
1: INTRODUCTION
Title-
Globalization impact on small business in UK
1.1 Overview of study
Globalizationtermed out asprocedure of integration and interaction among companies,
people and governments at the worldwide level. As multifaceted and complex phenomenon, it is
considered as form of businesses enlargement which change integration of local and unregulated
market economy, entails national economies into international. It grows more and more due to
advances in communication and transportation technology. In simple words, globalization is one
of the best way used to describe maximizing economic, social and political interrelation and
interactionacrossculturalandpoliticalboundaries.Theprocedureofglobalizationhas
disadvantage and advantages for economic, political and social development at some extent.
With the help of capitalist expansion businesses grow more which is quite beneficial for
economic development and nation improvement.
Global interactions bring many opportunities for the growth of international trade, culture
and ideas.Globalization is basically process of economic integration and action that is associated
with cultural and social aspects.As globalization, diplomacy and conflicts is also a big or
important parts of modern globalization and history of globalization. Economically, the process
ofglobalization is term that is inclusive of the services, products, technology, economic
resourcesofcapitalanddata.Globalmarketexpansionliberalizeeconomicactivitiesof
exchange of funds and products. Rise of global interaction, communication and specially internet
is one of the reason behind the ideas of globalization, which helps to people feel that relations
across global were flowing more speedily, strongly and becoming much democratic. The
procedureofglobalizationisdrivenbyseriesofconjuncturalandcumulativecriesin
international division of labor.
Overall globalization is one of the term that especially impact on country SME's such as
small business in UK. Small business get affected the most by globalization which influence its
productivity and profitability. SME can no longer expect to expand their business at global level,
on that case large companies can grab the opportunity to market expansion that really impact on
small business within UK. It could be added that globalization is one of the most important and
challenging task for any small business as they will be planning to expand their operations into
other parts of world. There are many challenges which they all might faces one of the most
common is related with expansion of business activities will be related with modes of entery.
1.2 Research aim and objectives
Aim:
To identify the concept of globalization and its impact on SME within UK: A study on Booths.
Objectives:
To identify the concept and meaning of globalization
To examine the positive impact of globalization on Booths
To analyses the negative impact of globalization onBooths
To recommend ways to overcome negative impact of globalization on Booths
Research question:
1.What is the meaning of globalization?
2.What is the positive impact of globalization on Booth?
3.What is the negative impact of globalization on Booth?
4.What are the ways in which Booths can overcome negative impact of globalisation?
1.3 Rationale
In modern era it has been determined that globalization concept has emerged as new way
ofcapitalistexpansion,thatimpactonbusinessindifferentways.Emergingtrendof
globalization is one of the main reason behind researcher choose this topic which helps to
understandtheconceptofglobalizationandhowiteffectsonsmallbusinessesofUK.
Globalization is important for small businesses' growth because it helps to increase profit margin
and improve country position as compare to another in world. It is essential for raising standards
of UK small business and also as important for economic well fare. Globalization is necessary
for SME' within UK as they contribute to stay competitive in marketplace against market
competitors. Other than this, expanding the operations of organization on international level will
help in increasing the revenue and profitability of organization. Other than this, it will help in
enhancing the quality of globalization activity which are performed by Booth to have a
sustainabilityoninternationallevel.BeingaSME,theenterprisehasahighscopeof
improvement and thus, it will help in suitable management of operations which are carried out by
the firm.
2. LITERATURE REVIEW
2.1 Idea and meaning of globalization
As according toSteger, (2017)in present time trend of globalization arise more and more
which has been adopted by many firms or countries for the purpose of developing or improving
economic situations better than before. The concept of globalization is based on capitalist
expansion that is very beneficial for business growth and success in market. Globalization is the
procedure of spreading products all over the world, it the procedure of spread technology and
investment across national borders. In simple words, globalization is how nations are coming
together as one big international economy, which makes global trade easier. In 20thera, many
nations agreed to lower taxes or tariffs on products that imported from another countries. To
make global travel easy and improve transportation is one of the main reason that causes
globalization. This process helps to connect one nation from other country based on international
transactionsandtransportationofproductsandservices.AsdiscussbyCzaika(2014)
globalization is one of the procedure in which people, thoughts and ideas spreadpassimthe
world.It is processproddingintegrating and actionbetween theglobalculture, economies and
governments. It is one of the best way to grow, expand and develop business, technologies or
services all around the world.
2.2 Positive effect of globalization on Small and medium organizations within UK
As discussed byLove (2015)Globalization process refers to business growth as it effects
UK small businesses the most. Many businesses adopt the process of globalization due to
increasecompetitioninmarketwhichhelpstostaystrongermorethantheothers.As
globalization impact positively on small business in UK, it supports to increase profit margin and
also helps to maximize financial budgets of small companies, for example Booth considered as
SME in country, that run its business by serving good quality products and services to customers.
With the help to current globalization Trend Company can be able to build it positions in new
market and grab the attention of new or existing consumers more than before. According to
Sinkovics (2018) globalization brought benefits in developed and underdeveloped countries as
whole. Positive impact of globalization process include many factors that affect positively and
helps in economic and country growth. This procedure brings the biggest opportunity for people
such as employmentthat helps to createand improve their career more, it also contributes to
raise their living standards. In keeping globalization as new ideas with this business small
businesses within UK access to foreign patronage.
2.3 Negativeinfluenceof globalization SME's within UK
Globalizationprocedureaffectsmallbusinessby differentsidesasthey influence
negative and positive upon SME's within UK. Mostly small business can not have sufficient
balance or funds to expand their business globally which impact on its market share and financial
budgets much than before. Small business face many challenges to being competitive and run
their organizations successful in marketplace. As discussed byTarutė (2014)if one company
expand their business in new market chances of the best opportunities is higher, but on the other
side it brings many disadvantages for small business for example, cultural barrier, language
barrier etc, that directly impact as whole industry in UK.In another country people are having
different language and beliefs in its cultural which is very different from another nations. That is
quite too simple that if UK small business or company expand their work in another country they
have to face difficulty as communicate with people out there which negatively affect profitability
and productivity. According toAbou-Shouk (2016)globalization procedure is one of the most
difficult thing for SME because in new market there were many competitors are existed who has
already built their reputation in market by providing their good qualitygoods and services to
consumer.
2.4 Recommendationto UK SME to get the better of within negative impact of globalization
Small businesses face difficulties if they include the idea of globalization within its
business, such issues are cultural differences, existing competitors in new market. According to
Khankeh(2015)thus, to overcome with above issues UK SME must conduct market research of
country where they want to expand their capitalist. With the help of market research small
businesses such as Booth Company can identify market trends and existing competitors power.
Small businesses should identify customer’s preference within new market that help to serve or
manufacture products and services according to their needs. Before conducting market research
small businesses within UK must identify their goals and target customers which they need to
offer products. As per thePark (2015), with the help of market research SME's will identify the
strength and weaknesses of present companies, which support to garb the competitive advantages
and opportunities. They must shape up its services and goods that meet with customers likes as
results shows in increase profits rather than before. Companies with market research garb the
attention of people more and build market reputation better than existing competitors. Small
businesses must need to identify and analyse strategies of another companies in new market
place and this is essential forhaving effective business growth and success.
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